ESR Advisory Services In Saudi Arabia
Economic Substance Regulations (ESR) are designed to ensure that companies with certain business activities have real economic operations in their country of registration. In Saudi Arabia, complying with ESR requirements is now mandatory for businesses in sectors like finance, holding companies, leasing, and service provision. MHK Services offers expert ESR advisory services in Saudi Arabia, helping you meet substance requirements, avoid penalties, and stay compliant with evolving laws.
Why ESR Compliance Is Important In Saudi Arabia With MHK Services
As part of international tax cooperation and alignment with OECD BEPS (Base Erosion and Profit Shifting) standards, Saudi authorities are actively monitoring companies that may be misreporting economic activity or avoiding taxation. Entities must prove they have adequate operations, staff, premises, and control functions within Saudi Arabia.
MHK Services helps you identify ESR applicability, prepare documentation, and file reports correctly — protecting your business from non-compliance issues.
What’s Included In Our ESR Advisory Services?
We provide complete guidance and support throughout the ESR compliance lifecycle:
- ESR applicability assessment for your business activity
- Gap analysis based on ESR substance requirements
- Preparation of ESR notification and report filings
- Assistance with financial and operational data for filings
- Review of board resolutions and corporate structure
- Documentation of core income-generating activities (CIGAs)
- Advisory on maintaining substance: staff, premises, management
- Support for group-level coordination and related-party disclosures
- Response handling in case of ESR audits or queries
- Ongoing monitoring and compliance reminders
MHK Services ensures your business is prepared before ESR deadlines and audit windows.
Is ESR Filing Mandatory In Saudi Arabia?
Yes. All companies operating in Saudi Arabia that are involved in ESR-relevant activities must submit ESR notifications annually. If the entity earns relevant income, it must also file a full ESR report and demonstrate economic substance. Non-compliance can lead to administrative penalties, license issues, or tax complications.
MHK Services ensures that your entity’s filings are timely, accurate, and backed by the required supporting documentation.
Estimated Pricing, Timeline, And Compliance Process
Estimated Pricing
For businesses with straightforward ESR requirements, advisory starts at SAR 4,000. More complex structures, multi-entity groups, or businesses with detailed reporting needs may range between SAR 8,000 and SAR 15,000+. Custom pricing is shared after reviewing your operations and activities.
Estimated Timeline
Initial ESR assessment and notification can be completed within 3–5 working days. Report preparation and submission, including documentation support, may require 7–10 working days depending on the volume of data. MHK Services works ahead of filing deadlines to prevent last-minute issues.
How The Process Works
We begin with an ESR applicability check based on your CR activity and income streams. After identifying gaps, we collect necessary data, prepare the ESR notification or report, and file it through the approved government channels. Our team handles end-to-end compliance and is available for post-submission support.
Benefits Of ESR Advisory For Your Saudi Business
With expert ESR support, your company can:
- Avoid administrative penalties and license renewal delays
- File accurate ESR reports and documentation
- Maintain a compliant business profile with tax authorities
- Respond confidently to government ESR reviews or inquiries
- Align your substance with international tax standards
MHK Services keeps your compliance accurate and audit-ready.
Contact Us
Book an Appointment with Us
Schedule a consultation with MHK Services today and discover how our expert Actuarial Valuation and financial consulting services can enhance the accuracy and reliability of your financial records.
What Are The Risks Of Not Complying With ESR Regulations?
Common issues faced by non-compliant businesses include:
- Financial penalties from regulatory authorities
- License suspension or non-renewal by MoC
- Increased scrutiny during tax audits
- Misalignment with international substance requirements
- Legal complications or reputational damage
How MHK Services Ensures Accurate ESR Compliance
We provide:
- Detailed ESR applicability checks for all legal entities
- Timely preparation and filing of ESR forms and reports
- Guidance on restructuring or documenting substance
- Compliance calendar setup and deadline tracking
- Coordination with finance, tax, and legal teams for accurate input
- Transparent service with regulatory and legal clarity
Why Choose MHK For ESR Advisory Services In Saudi Arabia?
MHK Services brings clarity to a complex regulation. Our ESR advisory services ensure you’re not only compliant but also prepared for regulatory reviews and future tax alignment strategies.
Ready To Comply With Saudi Arabia’s ESR Requirements?
Let MHK Services manage your ESR advisory services in Saudi Arabia — accurately, on time, and with complete confidence.
FAQ's
Economic Substance Regulations (ESR) are rules established by various jurisdictions, including the Organization for Economic Co-operation and Development (OECD), to combat harmful tax practices and ensure businesses have a genuine economic presence.
ESR compliance is crucial to meet legal requirements, avoid penalties, and ensure the growth and sustainability of your business. Additionally, it increases stakeholder confidence and openness.
MHK simplifies the compliance process by providing expert guidance, tailored solutions, ongoing support, and industry-specific expertise to ensure your business meets all ESR requirements.
Our ESR Advisory services include accurate and up-to-date guidance, customized compliance frameworks, continuous support throughout the compliance process, and specialized support for various industries.